How to Create a Payroll Calculator in Excel – 7 Steps

Step 1- Set up Employer Data

• Create a header.
• Create 2 columns and enter the sub-header.
• Enter the Duration of Work/Week, Hourly Pay, Total Hours & Paytime.

Step 2 – Enter Overtime Working Hours

• Enter the subheader of overtime hourly rate and total overtime hours.
• Enter the overtime hourly rate and total overtime hours.

Step 3 – Include Employee Compensation

• In row 12, add the performance bonus header and the amount.

Step 4 – Calculate the Gross Pay

• In D14, enter the formula,

• Press Enter to see the result.

Step 5 – Insert Tax Information

• Add FICA Tax, State Income Tax, and Insurance Amount as sub-headers.
• Enter the tax amount in the right-side columns.

Step 6 – Sum Gross Expenses

• Enter Gross Expense as the sub-header.
• In D20, enter the following formula

• Press Enter.

This is the gross expense.

Step 7 – Calculate the Net Payroll

• In D22, enter the formula,

• It subtracts Gross Expense from Gross Pay.
• Press Enter.

The net pay is displayed.

Download Practice Workbook

Download the workbook.

Related Articles

• How to Draw Payroll Process Flowchart in Excel
• How to Make a Payroll Accrual Calculator in Excel

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